1.1                          A bill for an act
  1.2             relating to insurance; requiring health plan companies 
  1.3             to notify enrollees of subrogation claims and 
  1.4             recoveries; amending Minnesota Statutes 1996, section 
  1.5             62A.096. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 62A.096, is 
  1.8   amended to read: 
  1.9      62A.096 [NOTICE OF SUBROGATION CLAIM REQUIRED.] 
  1.10     (a) A person covered by a health carrier who makes a claim 
  1.11  against a collateral source for damages that include repayment 
  1.12  for medical and medically related expenses incurred for the 
  1.13  covered person's benefit shall provide timely notice, in 
  1.14  writing, to the health carrier of the pending or potential 
  1.15  claim.  Notwithstanding any other law to the contrary, the 
  1.16  statute of limitations applicable to the rights with respect to 
  1.17  reimbursement or subrogation by the health carrier against the 
  1.18  covered person does not commence to run until the notice has 
  1.19  been given. 
  1.20     (b) A health carrier shall not make a subrogation claim 
  1.21  against a collateral source with respect to medical and 
  1.22  medically related expenses incurred by the health carrier, 
  1.23  unless the health carrier has first provided written notice to 
  1.24  the covered person on whose behalf the expenses were incurred, 
  1.25  or to that person's attorney.  The written notice must indicate 
  2.1   the person against whom the claim is to be made, the basis for 
  2.2   the claim, the amount of the claim, and a telephone number that 
  2.3   the covered person or the attorney may call for more 
  2.4   information.  Upon receipt of payment on a subrogation claim, 
  2.5   the health carrier shall promptly provide written notice to the 
  2.6   covered person, or the person's attorney, indicating the amount 
  2.7   received, the date it was received, the person from whom it was 
  2.8   received, and a telephone number that the covered person or the 
  2.9   attorney may call for more information.  The health carrier 
  2.10  shall retain in its files proof that the health carrier provided 
  2.11  notice as required under this paragraph or, if unsuccessful, 
  2.12  proof that it made a good-faith effort to locate the covered 
  2.13  person and to provide notice.  A violation of this paragraph is 
  2.14  deemed to be an unfair claim settlement practice under section 
  2.15  72A.201. 
  2.16     (c) For purposes of this section, "covered person" and "a 
  2.17  person covered" include a person formerly covered by the health 
  2.18  carrier. 
  2.19     Sec. 2.  [EFFECTIVE DATE.] 
  2.20     Section 1 is effective August 1, 1998, and applies to 
  2.21  subrogation claims made and recoveries received on or after that 
  2.22  date.